Venture capital-backed Foresight Mental Health nearly ran out of cash, forcing it to cut roughly 20% of its workforce and hire a new CEO to turn the company around, Behavioral Health Business reports.
The Berkeley, California-based outpatient mental health provider will have laid off 200 employees in two rounds by Sept. 9. The company, which once made big promises for the future of outpatient services, has also replaced its founding CEOs as it attempts to survive.
At the end of 2021, the company had nearly as many administrative staff as it had mental health providers. Of the roughly 1,000 people that worked for Foresight before the layoffs, about 520 were practitioners and about 480 were administrative team members.
Foresight Mental Health had big plans for a national expansion, recruiting additional providers and more.
However, by the end of 2021, expenses growth had outpaced revenue to such a degree that Foresight would have run out of capital by this summer, were it not for some dramatic action over the last few months. Read more.
